The cryptocurrency market occasionally experiences sharp movements. Following a decline that began at 02:00, resulting in approximately a $4,000 drop in Bitcoin‘s value, the market started to wonder about the next steps. This sharp decline in Bitcoin also affected the altcoins.
Bitcoin retreated to $40,600 due to the overnight drop but experienced a quick recovery shortly after. The response to the sharp movement in Bitcoin raised its price to $42,371 at the time of writing this article.
According to Coinglass data, the price fluctuations in the cryptocurrency market led to the liquidation of $97 million worth of short and long positions in Bitcoin. In Ethereum, the liquidated amount was slightly over $80 million.
The sharp drop in Bitcoin and the subsequent rapid recovery initiated a similar process for altcoins. While this article was being written, Ethereum fell to $2,160, and then subsequent purchases pushed the ETH price back to $2,150.
The volatility in the cryptocurrency market erased $390 million from long and short-focused positions in the last 24 hours. Of these positions, $340 million were long, while approximately $53 million were from short-focused positions.